Demystifying the Claims Process: Dealing with Total Loss of Your Vehicle

When you’ve been in an accident and your vehicle has suffered significant damage, one of the outcomes that sometimes surfaces is a ‘total loss’. This term, often dread-inducing for car owners, essentially means the cost to repair the vehicle surpasses its actual cash value (ACV). It’s a turning point that can leave you feeling anxious and overwhelmed, especially when you’re trying to navigate the labyrinth of insurance claims.

In this blog post, we will demystify the claims process surrounding a total loss vehicle, shedding light on what it really means, how the ACV is determined, and what happens when your vehicle is sent to the auto salvage yard. Arm yourself with knowledge and turn an otherwise stressful situation into a manageable task.

Call 317-608-2188 to Sell a Totaled Car to a Trusted Auto Scrap Yard in Indianapolis Indiana
Call 317-608-2188 to Sell a Totaled Car to a Trusted Auto Scrap Yard in Indianapolis Indiana

Actual Cash Value (ACV) for Totaled Cars

At the end of the day, your insurance provider is not there to give you a handout; they are a business that wants to pay out as little money as possible. This means that if it can be proven that repairing your car would cost more than its actual cash value (ACV), then they are likely to declare it a total loss. To determine this figure, they must take into account the age of your totaled car, its make and model, any prevailing market conditions, and a few other factors.

Auto Scrap Yards

You may be wondering what happens to your car after it has been declared as a total loss vehicle. In most cases, it will be sent off to an auto salvage yard where it can be dismantled. This is part of the process that allows your insurance provider to calculate the actual cash value and settle with you accordingly. It’s useful to keep in mind that they will not pay out more than is necessary, it can be beneficial for you to shop around for a better deal.

Insurance Claim Payments

At this stage, you may also be wondering what compensation you’re entitled to receive from your insurer. Generally speaking, you will be paid out in the form of an actual cash value claim which is calculated based on your car’s year, make, model and overall condition. This figure should reflect what a functioning car of the same make and model would cost if it were new. The amount can also be adjusted depending on the current market conditions for cars similar to yours.

Maximizing Insurance Payouts

Finally, it’s worth noting that there are certain steps you can take in order to secure a better deal from your insurer. For instance, if you have proof of valuable car parts or extras that were fitted on your car before the accident, factor these into the equation as they may add additional value. Additionally, try to get an independent assessment done to find out how much it would cost to repair your car. This process can be time consuming, but it may help you get a better deal in the long run.

Bonus Tips for Total Loss Vehicles

In addition, there are a few other things you can do in order to get the most out of your total loss vehicle situation. It might be worth contacting an Indianapolis auto salvage yard to see if they will provide a better junk car selling experience. They may offer you a good amount of cash for your junk car, plus tow it away for free. You can also reach out to a scrapyard for used auto parts and repairs. This is especially helpful if you’re planning to buy a used car down the line and the salvage yard can provide you with quality parts and accessories at a discounted price.

It is also important to remain calm during the claims process as it can often become an emotional journey. Be sure to take time for yourself and don’t be afraid to ask questions or seek advice from friends and family. Furthermore, pay attention to any deadlines or timelines provided by your insurer and be sure to comply with all of their requirements. This will help ensure that you receive the best possible outcome from your claim. Also, if your insurer offers rental car coverage, be sure to take advantage of that in order to ensure that you’re able to get around during your claims process.

In Summary

Overall, the claims process surrounding total loss of your vehicle can seem daunting and overwhelming – especially when you’re dealing with an insurance provider who is trying to pay out as little money as possible. That being said, by equipping yourself with knowledge and implementing some of the suggestions outlined above, you can transform this otherwise overwhelming situation into a task that is easier to handle.

GC’s Junk Cars pays cash on the spot for all junk cars, including totaled ones! Contact us at 317-608-2188 to sell a totaled car in Indianapolis, Indiana, today! We offer free towing with our in-house tow truck, so all you have to do is call and accept our offer!

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The Pros and Cons of Making a Total Loss Car Insurance Claim
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Can I Choose to Keep My Car After Totaling It?

For most, car accidents are emotionally-draining experiences. But with proper insurance coverage, they do not have to be financially-draining. Learn your options for keeping a totaled car, and how to do so without committing fraud with your insurance company.

Local Junk Car Buyers Indianapolis Indiana 317-608-2188
Local Junk Car Buyers Indianapolis Indiana 317-608-2188

When is a Vehicle Totaled?

A vehicle is considered “totaled” when the cost to repair it back to its previous condition is more than the current value of the vehicle. Insurance companies and car manufacturers have stringent procedures and requisites in place to determine these values. With a totaled vehicle on your hands, you may feel like you are at a total loss; however, if you have insurance, you should be just fine depending on the level of coverage your policy provides.

With full coverage insurance, you can expect to receive money from your insurance provider to repair the damages, or to settle the note with the lien holder and cover the cost of a new vehicle of equal current value. If you have liability coverage, you will mostly likely receive less from your insurance provider and have to pay more out of pocket.

Uninsured or Underinsured Drivers

If you do not have insurance, your best option is to junk the vehicle for cash and apply your profit toward a new car purchase. You can do this by contacting a trusted junk car buyer and requesting a free phone estimate. If you accept their offer, they will usually come pick up your vehicle at no extra charge! Only reputable and highly professional junk car buying companies offer this kind of service.

Insurance Claims and Totaled Cars

If your insurance company marks your car totaled, they will take your vehicle and give you a check for the current value. However, if you want to keep your totaled vehicle, you must inform your insurance company. In this case, you can expect to receive less money for the vehicle.  If you were to accept money from the insurance company, and then keep your vehicle, you could be found guilty of insurance fraud depending on the specifics of your situation.

Some policies allow people to keep their totaled vehicle, while others include language that does not permit this at all. It is important to talk to your insurance provider and learn the details of what your policy covers and what it does not. Do this before an accident occurs so that you make better decisions regarding what you can do with a totaled car.

Did you total your car, but it is not covered by enough or any auto insurance? Contact GC’s Junk Cars at 317-608-2188 to sell your junk car for cash on the spot to one of our Indianapolis junk car buyers! We even offer free junk removal!

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General Qualities of a Total Loss Car
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What You Need to Know About Liability Car Insurance Coverage

If you have just bought or received a new car you plan on driving, you will need car insurance. How much car insurance coverage you need depends mostly on what the state requires, but also your personal preferences, namely budget. Most states, including here in Indiana, require that all drivers maintain automotive liability insurance coverage at all times. This is known as the state-minimum for car insurance coverage.

Continue reading to learn some important facts about car insurance liability coverage that can help you better understand your options.

Totaled Car Buyers Indiana 317-608-2188
Totaled Car Buyers Indiana 317-608-2188

Liability Car Insurance Coverage Facts

Automotive liability insurance coverage is a type of car insurance coverage that only covers another person’s bodily injuries and property damages. The owner of the liability insurance policy is not covered. Let’s dive into this little further.

There are two types of liability car insurance coverage: bodily injury liability coverage and property damage liability coverage. Drivers are required to have both kinds of coverage at all times to operate a motor vehicle, legally.

▶ BODILY INJURY LIABILITY COVERAGE (BI) = Bodily injury liability car insurance covers another driver’s injuries, including their medical expenses and hospital bills.

▶ PROPERTY DAMAGE LIABILITY COVERAGE (PD) = Property damage insurance coverage pays for another driver’s automotive repairs, or for a new vehicle if the car is totaled.

Coverage Limits for Liability Car Insurance Policies

Although automotive liability car insurance covers another driver’s bodily injuries and property damages, you could still be responsible for paying out-of-pocket if the total cost exceeds your policy’s coverage limit. The state does set a minimum limit, but when you are purchasing car insurance, you can choose your own limit.

Let’s say you cause an accident, and the total cost of the of the driver’s medical expenses and property damages totals out to $25,000. Your insurance carrier will cover this cost so long as your coverage limit is at least that amount. If your coverage limit was only $20,000, you would be responsible for paying the remaining $5,000 out-of-pocket.

Your Bodily Injuries and Vehicle Damages

Under an automotive liability insurance policy, your own bodily injuries and property damages are not covered. The only parties covered are other drivers harmed in the accident. For this reason, it is strongly recommended to add collision insurance coverage to your liability insurance policy. Collision coverage would cover your bodily injuries and property damages in the case of an accident, but it would also come with a coverage limit. You can choose your coverage limit based on your budget and how comfortable you feel paying out-of-pocket in the case of an accident.

Comprehensive Insurance Coverage

Collision automotive insurance coverage does not cover other types of vehicle damages outside of motor vehicle accidents, such as a tree falling on your car or hail damage. If you want these types of damages covered, you will need comprehensive automotive insurance coverage.

Have you totaled your vehicle but only have liability insurance coverage, leaving you with no means to pay for repairs? Contact GC’s Junk Cars at 317-608-2188 to sell your junk car in Indianapolis, Indiana for cash on the spot! We provide free junk car removal, so we come to you!

Related Posts:

How You Should Prepare for Selling a Junk Car
General Qualities of a Total Loss Car
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GC’s Junk Cars
GC’s Junk Cars 317-608-2188